Half of SMEs lack adequate insurance

Half of small and medium-sized enterprises (SMEs) that need employers' liability insurance don't have it, according to research by AXA Business Insurance.

Employers' liability cover is a legal requirement for all businesses that employ staff and protects them against employee claims for injury or illness sustained while working for the business.

The research also found that more than 75% of SMEs questioned don't have personal accident cover.

Key figures:

41% don't have business insurance for their work vehicle

26% of people who run businesses from home have spoken to their home insurer about business cover

22% of home-run firms have insurance for business equipment such as laptops and mobile phones

19% of people who keep business tools at home have insurance for them.

Darrell Sansom, managing director of AXA Business Insurance, said:

"Insurance may feel like one of the little bits of admin that you ought to sort out at some point but not having it can have big consequences. Claims for liability can run into millions of pounds and not having cover in place is putting you, your business, your employers, clients and others at risk."